Silver Edges Up Amid Falling Oil Prices, Cautious Fed
The silver price rose 0.37% on Monday to trade around $66.50 at the time of writing, despite a stable US Dollar (USD) and Fed officials remaining cautious amid elevated inflation.
Falling oil prices eased concerns about inflationary pressures, as lower energy costs help reduce the prospect of US interest rates remaining elevated for longer. The decline in oil prices is partly due to hopes of renewed dialogue between Washington and Tehran, with US President Donald Trump signaling openness to meeting Iranian President Masoud Pezeshkian on the sidelines of the United Nations (UN) General Assembly in New York this week.
The Federal Reserve (Fed) raised interest rates by 25 basis points (bps) last week to counter inflationary pressures, and investors now assess the possibility of further monetary tightening in the coming months. Fed official Goolsbee delivered a more hawkish-leaning message than usual, emphasizing the need for clear evidence that supply-driven inflation is fading before declaring victory on inflation.